Contemporary penology concerns itself mainly with prison management and criminal rehabilitation. The word seldom applies to theories and practices of punishment in less formal environments such as parenting.

This theory of punishment is based on the notion that punishment is to be inflicted on an offender so as to reform him, or rehabilitate him so as to make his re-integration into society easier. Punishments that are in accordance with this theory are community service, probation orders, and those which entail guidance and aftercare of the offender.

This theory is founded on the belief that one cannot inflict a severe punishment of imprisonment and expect the offender to be reformed and able to re-integrate into society upon release. Although the importance of inflicting punishment on those persons who breach the law, so as to maintain social order, is retained, the importance of rehabilitation is also given priority.